Monday, August 03, 2009
Is HSBC broke?
HSBC's Net Falls 57% (quote from Financial Times). What is the meaning of this? I know people who is having serious problems with these banks, they are not transferring monies but using all kind of excuses. Could it be hat there are serious problems? I dont want to create a panic, but that is how panics and runs on the banks begin. The Buyer/\depositor should Beware.
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3 comments:
HSBC is actually making money. These banks are all provisioning, to a greater or lesser extent, against bad debts; but if you account for this, most of them have returned to profitability. Hence the disgraceful "bonuses" the pay themselves. But it was the taxpayers who bailed them out, and so they have just continued their game of privatising the profits and socialising the costs.
If this doesn't make you jaded, nothing will.
Anon.
HSBC, if I am not wrong, is not an American bank. Although in these days of opacity no one knows for sure who is the real owner of anything. I have a very good experience with American banks, they are honest and give fast service. HSBC is not an American bank, not on that count, for sure.
We are so naive about large organizations. We think they know what they are doing, that there work like a Swiss watch. I know only one word to describe them: QUILOMBO.
Quilombo originally was a jungle settlement of escaped African slaves. In Buenos Aires's jailhouse-lingo describes a disordered whorehouse.
HSBC is really a British bank; but with a colonial origin, dating back to the British occupation of China; something like Standard Chartered, which has origins in colonial Africa and also Asia.
HSBC got suckered into the Madoff thing; as you say, it is false to imagine that just because they are big (and they are very big) that they know what they are doing. Standard Chartered, however, did not get sucked in and is now very profitable and deservedly so. You should seriously consider buying Standard shares.
Anon.
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